Unlisted Lands $2.25M to Unlock Hidden Real Estate Deals with AI

The real estate market, despite its size and significance, has long been constrained by a lack of transparency and opportunities for buyers and sellers who operate off the grid. Less than 5% of homes are publicly listed for sale in any given year, leaving a vast majority of potential deals hidden from view. This creates a substantial gap for both homeowners considering a sale and buyers in search of homes that aren’t openly advertised. Unlisted, a technology company leveraging AI and machine learning, seeks to close this gap by transforming the process of connecting off-market homeowners with potential buyers. The company recently secured $2.25 million in seed funding, a significant step forward in its mission to revolutionize the way homes change hands without public listings.

Unlisted’s platform aims to expand the real estate market beyond its traditionally limited boundaries by using artificial intelligence to match homeowners with buyers who share compatible timelines and terms. As founder and CEO Katie Hill points out, “Historically, real estate is treated as an all-or-nothing proposition—a home is either for sale or it is not. The reality is, homeowners are often open to selling for years but dread the listing process so they put it off.” Hill’s insight is that many homeowners are reluctant to enter the traditional listing process but may be willing to explore private transactions on their own terms.

Through Unlisted, homeowners can digitally claim their properties and gauge interest without the pressure of formal listings. The platform facilitates subtle connections between off-market homeowners and buyers, allowing potential transactions to occur without the formality of public exposure. “We’re not a brokerage, we stay out of the transaction and we don’t take commission. We’re a discovery tool, an easy, elegant solution that creates more options and more wins,” Hill explains.

Unlike typical real estate platforms, which focus on public listings and act as intermediaries in transactions, Unlisted works as a neutral facilitator. It charges a nominal fee to buyers who initiate contact with homeowners, while most of the company’s revenue comes from real estate agents who subscribe to the service on behalf of clients looking for off-market properties. This approach allows Unlisted to remain commission-free while providing valuable data and insights for both buyers and agents.

The $2.25 million seed round was led by HearstLab, a venture capital arm that invests exclusively in women-founded technology companies. This partnership with Hearst Newspapers, which brings expertise in local media and digital marketing, will allow Unlisted to enhance its reach and strengthen its data capabilities. As Bridget Williams, Chief Product & Strategy Officer at Hearst Newspapers, explains, “This partnership allows us to reinvigorate local real estate reporting by offering readers deeper, more engaging data and tools.” The collaboration with Hearst will integrate Unlisted’s tools into Hearst’s nationwide network, making it a powerful resource for local real estate insights.

Hill’s background in both advertising and technology has been instrumental in her approach to real estate. After beginning her career at Leo Burnett and gaining experience as a two-time founder, she turned her focus to real estate innovation. Hill’s entrepreneurial spirit led her to win pitch competitions at institutions like the University of Chicago and the University of Dayton, where she became the first two-time winner of the Flyer Pitch competition. A major turning point came earlier this year when Hill won $100,000 at Pitch HearstLab, which helped launch her partnership with Hearst Newspapers and paved the way for the recent seed funding.

The timing of Unlisted’s success is significant, as the real estate industry grapples with challenges like low inventory, shifting commission structures, and changing advertising rules. These market conditions create fertile ground for innovation. As Bill O’Donnell, a former Chief Architect at KAYAK and Unlisted’s close advisor, stated, “Real estate is generally not that great of an experience. That’s no secret. It’s fun to be part of a project bringing new ideas and new technology to age-old challenges.”

One of the most pressing challenges in the current real estate market is the lock-in effect, where homeowners with low mortgage rates are hesitant to sell. As Hill points out, “That experience got me thinking that people should be having more conversations about their property plans. If we understand what people’s plans are, then that’s where there’s an opportunity.” Hill’s personal experience in trying to buy a home with a pool during the pandemic gave her insight into the struggles homeowners face when they are uncertain about the selling process. After approaching her neighbor to ask if he was willing to sell his home, Hill realized that the real estate process could benefit from technology that facilitates these types of off-market discussions.

Unlisted’s platform uses AI to predict which homes are likely to sell based on buyer preferences and market trends. By scoring and ranking homes based on how well they align with a buyer’s needs, the system helps identify potential opportunities in the off-market space. Hill’s team also invites homeowners to signal their interest in selling by registering their homes on the platform. These homeowners don’t need to commit to selling immediately, but simply provide information on when they might be ready. The more responses the platform gathers, the more accurate its predictions become, refining its matchmaking process.

Since launching, Unlisted has already reached out to over 1,000 homeowners in 14 cities, facilitating the sale of six homes entirely off the market. These initial successes highlight the platform’s ability to identify opportunities that would otherwise remain hidden. Melanie Hayes, a real estate agent and Unlisted advisor, reflected on the platform’s potential, saying, “Unlisted is like nothing we have ever seen before. The platform allows agents to gain real insight into the market and tap into the 95% of homes not actively listed for sale.”

Unlisted’s funding and growing platform arrive at a time when the real estate industry is ripe for disruption. With the help of AI and machine learning, the company is positioned to help both buyers and homeowners navigate a complex market by connecting them with opportunities that traditional platforms can’t offer. As Hill continues to expand the platform’s reach, Unlisted’s ability to facilitate private transactions will likely play a growing role in reshaping how homes are bought and sold in the coming years.